Although Sydney has not earned a reputation as a “shopping paradise” like Hong Kong, the issuance of gift cards is nonetheless very widespread. Giving or receiving gift cards during festive seasons should be a joyful experience, but when gift cards expire or have their value unreasonably deducted, consumers often feel deceived. This situation, however, is set to improve.

New South Wales is preparing to introduce new reforms governing the issuance of gift cards. Amendments to the Fair Trading Act 1987 are scheduled to be tabled in the New South Wales Parliament in October this year. If the bill is passed, all gift cards sold in New South Wales will be required to have a minimum validity period of three years, and businesses will be prohibited from deducting administrative fees after the cards are sold so as to reduce their stored value.

The New South Wales Minister for Innovation and Better Regulation stated that most gift cards sold in the state currently have a validity period of only 12 months, and that 8% of consumers fail to use up the stored value before expiry. This means that consumers in New South Wales lose tens of millions of dollars every year.